Archives for category: For-Profit

John Thompson, historian and retired teacher, reviews an important new book.


Lawrence Baines’ Privatization of America’s Public Institutions: The Story of the American Sellout combines analyses of assaults on four public sectors, the military, corrections departments, public schools, and higher education, to reveal the immense scale of privatization and its dangers. Dr. Baines, the Associate Dean of Education at the University of Oklahoma, shows that “Privatization is no longer an occasional strategy to help improve efficiency of a particular public service.” It “has become an automatic response to any perceived governmental inefficiency.” Baines carefully documents the ways that “Privatization is changing the nature of America’s public institutions and consequently, the character of the country.”

The first chapter, “Privatizing the Military: Profiting from the Carnage of War,” foreshadows a frightening pattern that explains why I, for one, was slow to see the full nature of the threat. It starts in 2007 with the killing of 17 persons in Baghdad by mercenaries employed by Erik Prince’s Blackwater. The people I know were horrified by that and other behavior of contract fighters when Dick Chaney, formerly of Halliburton, was Vice President. I had no idea, however, that by 2015, private contractors in the Mideast would outnumber soldiers by a 3 to 1 margin.

By that time, 44% of Department of Defense discretionary spending went to private contractors. As one military analyst said, contractors had become “the fifth branch of the military.” Baines explains how the inability to hold contractors accountable leads to an unknowable number of killings, meaning that we can’t evaluate the human and moral costs of military privatization any more than we can calculate the true financial costs.

Baines reports that we have reached the point where ROTC officer training is contracted out. Since the program acculturates cadets who will become the leaders of our democracy’s armed forces, an analyst says, this form of privatization may produce “‘longer-term effects on the overarching values that motivate military service.’”

This reader thought he had a more thorough understanding of the topic in the next chapter, “Privatizing Corrections: Making Money from Misery,” which documents the costs in money, lives, and our values of privatized prisons. I had read about numerous individual scandals, such as Montana Two Rivers Detention Center which was funded with a $27 million bond issue in 2007, but I had not seen the bigger picture described by Baines. Two Rivers remained vacant for 9 of 10 years but the private corporation which ran it still made money. Similarly, Mississippi had to pay off the debt of about $121 million for a closed prison, but its operators, Geo Group made over $2 billion. And with the scandal-ridden Pennsylvania institution, where the program was dubbed “kids for cash,” private operators walked away with profits for a million-dollar condominium and a $1.5 million yacht.

It’s bad enough that private operators charge more for detentions that were more brutal towards adult inmates, but since crime has declined, they’ve moved into even more disgusting systems for making big bucks, such as juvenile detentions. More than half of incarcerated juveniles are locked up for nonviolent crimes; 21% committed no crime. They are locked up due to “technical violations,” and “status offenses.” So, an institution profits from detaining a 13-year-old who didn’t show for a hearing about a fight he didn’t witness and a 15-year-old girl who ridiculed an assistant principal on social media.” The median time for a juvenile for status offense is 128 days.

Then the story grows more horrific. As states like Oklahoma over-incarcerate on the cheap, fees and fines become an essential funding source. I knew how cruel the situation is in Oklahoma, where we are #1 in the world in incarceration rates, but I had no idea that 48 states have gone down that path. And since fees and fines are a doomed method of funding the overgrown incarceration complex, monitored release of inmates is growing. That creates another market for privatizers, electronic bracelets to oversee parolees. And, surprise!, the lucrative, private market for monitoring those devices is “subject to virtually no judicial oversight.”

And the story became even more unconscionable as private prisons moved into another growing market, immigrant detentions. Since 2003, 176 immigrant deaths have gone largely unreported by for-profit institutions. And private prisons have enabled Trump’s attacks on immigrant families.

Moreover, the dangers and costs of privatized prisons, like those of privatized schools, have grown worse during the Trump administration. And that leads to Baines’ concise indictment of the privatization of public schools through charter schools and vouchers. Readers of this blog are well-versed in the ways that privatization has undermined public education, so I will merely touch a few of Baines’ insights in Chapter Three, “Privatizing K – 12 Public Education: How the Profit Motive Is Changing Schools,” as well as recommend a full reading of his evidence.

The use of privatization as a tool for corporate school reform has denigrated teacher quality and fostered dumbed-down education. It uses technology to reduce number of teachers needed in the culture of data-driven competition it created. It has gotten to the point where 5,000 emergency certificates were issued in Oklahoma in 2017 and 2018. Next door, Texas adjudicated 222 cases of teacher misconduct in 2016, with most involving sex acts with minors. The backlogged caseload is over 1,100.

And privatization has increased inequality and segregation. Baines offers a corrective to the spin of charter advocates who deny they have promoted segregation, “Most minority students who attend privatized schools have few white classmates; most white students who attend privatized schools have few minority classmates.”

The next topic that Baines analyzes, higher education, is intertwined with the legacy of privatization by charters and vouchers, as well as the budget-cutting that has devastated k – 12 education in Oklahoma and many other states.

Early in the chapter, “Privatizing Public Education: Selling Off the Alma Mater,” Baines lists the ten states that have cut higher education by 26% to 54% from 2008 to 2017. Oklahoma is 6th, with cuts of 34%. In 1996, higher education privatization was basically limited to five support services. By 2017, there were 17 categories of privatized services, culminating with academic programs. Moreover, in 2016, 1/3rd of universities outsourced their online programs.

Public school teachers have more than enough experience with the testing toxicity pushed by the Pearson corporation and Eli Broad. Less well known is their intrusions into universities. Privatizers have even moved into micro-credentialing, making money off of credentials for skills like “Checking for understanding using whiteboards.” Moreover, when these online providers are both a private company and a LLC (Limited Liability Company), they aren’t obligated to reveal their instructors’ qualifications.

To take just a couple of Baines’ examples, the Eli Broad College of Business, Michigan State University gets 32% of the gross revenue in partnership with Bisk, “a corporation specializing in curricular design, online education, and student support,” which gets 68% of the gross revenue from the Business Analytics master’s program. Baines notes that most students probably don’t know that they will not be taught by M.S.U. faculty, as opposed to Bisk employees who may not have a degree in the subject they are teaching.

A similar lack of transparency is illustrated by Arkansas State University’s Academic Partnership program where students aren’t told that they may not have instructors from their university, and that A.S.U. program’s website is virtually identical to its counterpart at U. of Texas, Arlington, which has 18 tenure-track faculty and a 1000-1 ratio for tenure track faculty.

Finally, Baines listed the costs to graduates, and students who failed to graduate from our privatized universities. Ironically, these debts are, in large part, a legacy of corporate school reform which claimed to be a “21st century civil rights movement.”

From 2010 to 2016 individuals with at least some college “captured 11.5 million of the 11.6 million jobs available.” Pay for workers without a high school diploma is less than half of that for workers with a college degree, so access to high-quality education should have been an important tool for achieving equity. But even when a student earns college degree, privatization has undermined the prospects for many or most graduates. Pell Grants used to pay 75% of 4-year college costs but now they only pay for about 30%. Consequently, former university students have accumulated $1.5 trillion in debt.

Too often, the value of university degrees has been compromised. Today, 70% of higher education instructors are adjuncts. The university’s mission of service to society has been de-emphasized. College is supposed to be a transformational experience “a rush of unfamiliar people, cultures, knowledge, relationships, and interactions.” But now, the “collegiate experience is becoming commercialized, standardized, and monetized.”

Baines wraps up his account of the human and financial costs of privatizations by illustrating ways that the military, prisons, public schools, and higher education are being undermined by interrelated forces. Just as the military’s belief in service to the U.S. is put at risk, the university’s contributions to the public good are being undermined. Privatized prisons lead to more segregation of inmates by race as a means of self-protection. Similarly, privatized schools increase segregation as they foster a culture of competition that increases inequality. And the tragic tale all comes together in the final chapter about the privatization of universities.

Baines explains that, “Privatization is happening so quickly and on such a colossal scale in higher education that it is difficult to stay current.” To take one example of how it is interconnected with k-12th grade schools, he shows how teacher certification is “being transmogrified into a product traded on the open market, teachers are circumventing universities and teacher preparation completely and moving straight into the classroom.” This has led to unqualified teachers being rushed into many states’ classrooms, pushing down school quality and enabling privatizers to blame the public schools.

Privatization of America’s Public Institutions is so full of memorable characterizations of the tragedies of privatization that it is difficult to select one as a concluding statement. So, I’ll borrow Baines’ quote of the Commissioner of U.S. Bureau of Education, whose words from 1891 would be equally true if applied to today’s armed forces or the penal system. The commissioner said, “let us hope, that the time is not far distant when an untrained teacher will be considered a greater absurdity than an untrained doctor or lawyer.”

Will Huntsberry of the Voice of San Diego reports that all the online charters connected to the biggest charter fraud in U.S. history will close.

Huntsberry writes:

An online charter school empire whose leaders have been charged with enrolling fake students and misappropriating $80 million in public funds will be forced to close all of its schools across California.

In May, the San Diego district attorney’s office charged 11 people in a corruption scandal of historic proportions. Prosecutors say Sean McManus and Jason Schrock, who operated A3 Education, were the ringleaders of the operation. Several who worked with McManus and Schrock have also been charged with crimes, including the superintendent of the Dehesa School District in San Diego County.

At its peak, A3 operated 19 online schools across the state, including three in San Diego, according to investigators. One closed before the charges were filed. And two more – one in San Diego and another in Los Angeles – were slated to close. But now a court-appointed receiver has decided to shutter all of the remaining schools.

Students’ records at each of the closing schools will be transferred to their school district of residence by Sept. 30, according to a letter obtained by the Marin Independent Journal, which was sent out to districts associated with the A3 schools. Richard Kipperman, the court-appointed receiver, confirmed to Voice of San Diego that all the schools will close.

How the Scam Worked

Prosecutors painted an intricate picture of a complex organization that managed to turn student records into giant sums of cash. A3 Education enrolled many students who took actual classes, but it also enrolled many students who never did any schoolwork, prosecutors say.

Most of the fake students were participants in summer athletic programs, according to the indictment. Enrollment workers would approach a football program, for instance, and offer as little as $25 a head for each player’s records. The enrollment worker would also get a commission on however many students he or she enrolled. The rest of the money – which totaled in the thousands of dollars for each student – went to companies controlled by McManus and Schrock.

In one instance, Luiz Rigney, an enrollment worker, carried several suitcases of student paperwork, worth roughly $5 million, to one of A3’s offices. Rigney had been asked to backdate that paperwork so A3 could get maximum profit, prosecutors say.

In another instance, two workers texted each other back and forth about the large sums of cash flowing through the company: “I had the weirdest dream last night! One was about us growing all Sean’s schools. I was running all the Facebook campaigns and you were running around my office drinking champagne throwing money everywhere yelling I love bonuses,” the texts read, according to court documents.

Jan Resseger noted that the Colorado state board of education awarded a contract to MGT Consulting based on their “success” in turning around the public schools of Gary, Indiana. She shows in this post that there was no turnaround.

She writes:

Colorado state school board members praised MGT’s record in the so-called turnaround of the only whole school district it has managed—for the past two years—in Gary, Indiana. The fact that MGT Consulting, a for-profit, was praised for work in Gary caught my eye. I have been to Gary, just as I have been to Detroit, whose public schools have shared some problems with Gary’s. Detroit’s school district was assigned a state emergency fiscal manager by former Governor Rick Snyder; in fact Detroit’s school district was assigned an emergency manager named Darnell Earley after he left Flint, where, as municipal emergency fiscal manager, he had permitted the poisoning of the city’s water supply. Fortunately Detroit’s schools have been turned back to the democratically elected local school board, which hired a professional educator, Dr. Nikolai Vitti.

And I have been to the cities in Ohio now in state takeover, and being operated by appointed Academic Distress Commissions. I am thinking of Youngstown, which in four years under an Academic Distress Commission and appointed CEO, has not turned around. I am thinking of Lorain, where outright chaos has ensued under an Academic Distress Commission’s appointed CEO, David Hardy. And I am thinking of East Cleveland, whose schools are just beginning the state takeover process, and ten other Ohio school districts—including Dayton and Toledo—being threatened with state takeover.

All of these Rust Belt cities and their school districts are characterized by economic collapse. They are industrial cities where factories have closed and workers moved away to seek employment elsewhere. When industry collapses, the property tax base—the foundation of the local contribution of school funding—evaporates, and as workers lose jobs or leave, local income tax revenue collapses as well…

In July 2017, the state took over the school district in Gary and turned the schools over to a private, for-profit management company: MGT Consultants. MGT hired Peggy Hinkley, a retired school superintendent to run the schools, but she resigned a little more than a year later. The Post-Tribune‘s Carole Carlson describes Hinkley’s tenure: “Hinkley served 14 months and ruffled the feathers of some elected officials who criticized her decisions, especially the closing of the Wirt-Emerson School of Visual and Performing Arts. When Wirt-Emerson closed in June (2018), it left the district with just one high school, the West Side Leadership Academy. It stoked fears of a continuing exodus of students who would leave for charter schools or other districts… Under Hinckley, Gary reached a deal resolving $8.4 million in back payroll taxes owed to the Internal Revenue Service. The IRS forgave a large portion of the debt, leaving the district with a $320,000 payment. The freeing up of the liens on buildings allowed Hinckley to list 33 vacant schools and properties for sale. By November, the district had accepted five offers, amounting to $480,000. More sales are still being weighed. In all, Hinckley erased about $6 million of the district’s $100,000 million in long-term debts and reduced its monthly deficit from about $1.8 million to $1.3 million… Academically, all seven elementary schools received Fs on state report cards this year.”

Clearly, in Gary, Indiana, MGT Consultants has not miraculously achieved the kind of quick school district turnaround Colorado’s state school board bragged about when it contracted with MGT to take over three school districts.

Read on to learn about the role of ex-Indiana superintendent Tony Bennett and the Corporate Reform-disruption-greed Movement.

Stuart Egan read Baker Mitchell’s op-ed in the Wall Street Journal defending charters against critics who say they foster segregation, and he was flabbergasted.

Here is his post.

He includes Baker Mitchell’s Wall Street Journal article, fulminating against the critics.

Then he cites the ProPublica article, Lindsay Wagner’s reporting, and John Merrow’s commentary, all reinforcing that Baker Mitchell has made millions by operating four charter schools.

Then Stuart goes to the official North Carolina report card site to gather information about Baker Mitchell’s charters.

Three are overwhelmingly white; one is overwhelmingly black. In other words, this champion of charters, this man who told the world that charters do not promote segregation, is managing a charter chain that is highly segregated. Furthermore, contrary to what he claimed in his article, his schools do NOT outperform local public schools.

Baker Mitchell prevaricated Bigly.

Someone should tell the Wall Street Journal to do their own fact-checking.

The Wall Street Journal editorial pages has been promoting school choice—charters and vouchers—for many years. It sees public education as a government monopoly, not a public service. It has published article after article explaining away the failures of school choice and re-interpreting negative evidence.

A few days ago, the paper may have struck a new low when it published a defense of charter schools by Baker Mitchell, the founder of a for-profit chain of charters in North Carolina, a non-educator who rakes in millions of dollars every year by owning four charters.

When he saw the WSJ article by Mitchell, North Carolina Teacher Stuart Egan pointed out that Baker Mitchell was reiterating the talking points created by Rhonda Dillingham, executive director of the North Carolina Association for Public [sic] Charter Schools.

Who is Baker Mitchell? He is a retired electrical engineer and a libertarian in the Koch brothers’ mold. He moved to North Carolina in 1997 and soon became allied with Art Pope, a rightwing libertarian who funded the Tea Party takeover of the state in 2010.

ProPublica featured Baker Mitchell as an example of a businessman who was turning public education dollars into his own private profits.

Here is an excerpt:

The school’s founder, a politically active North Carolina businessman named Baker Mitchell, shares the Kochs’ free-market ideals. His model for success embraces decreased government regulation, increased privatization and, if all goes well, healthy corporate profits.

In that regard, Mitchell, 74, appears to be thriving. Every year, millions of public education dollars flow through Mitchell’s chain of four nonprofit charter schools to for-profit companies he controls.

Over six years, Mitchell’s two companies have taken in close to $20 million in fees and rent — some of the schools’ biggest expenses. That’s from audited financial statements for just two schools. Mitchell has recently opened two more.

The schools buy or lease nearly everything from companies owned by Mitchell. Their desks. Their computers. The training they provide to teachers. Most of the land and buildings. Unlike with traditional school districts, at Mitchell’s charter schools there’s no competitive bidding. No evidence of haggling over rent or contracts.

The schools have all hired the same for-profit management company to run their day-to-day operations. The company, Roger Bacon Academy, is owned by Mitchell. It functions as the schools’ administrative arm, taking the lead in hiring and firing school staff. It handles most of the bookkeeping. The treasurer of the nonprofit that controls the four schools is also the chief financial officer of Mitchell’s management company. The two organizations even share a bank account.

Mitchell’s management company was chosen by the schools’ nonprofit board, which Mitchell was on at the time — an arrangement that is illegal in many other states.

John Merrow wrote that Baker Mitchell could teach Jesse James a few tricks. Merrow reviewed the tax filings of Mitchell’s charter schools and hit pay dirt. Of the $55 million his schools had received by 2014, Merrow wrote, Baker had collected $19 million.

Baker Mitchell’s article charges that there is a “smear campaign” against charters. He begins:

Leland, N.C.

With a new school year ahead, the attacks on charter schools have begun anew. In North Carolina we’re hearing outrageous charges of racism. A public-television commentator claimed recently that “resegregation” was the purpose of charter schools “from the start.”

Meanwhile, parents are voting with their feet. Statewide enrollment in traditional public schools has declined four years in a row. Less than 80% of K-12 students now attend district schools. More than 110,000 are enrolled in charters and 100,000 in private schools. More than 140,000 are being home-schooled…

Charges of racism are intended to divert attention from the failure of traditional public schools to educate minority children….

The Roger Bacon Academy, which I founded in 1999, oversees four charter schools in southeastern North Carolina that are among the top-performing in their communities. All four schools are Title 1 schools, meaning 40% or more of the students come from lower-income households. One of the schools, Frederick Douglass Academy in downtown Wilmington, is a majority-minority school.

We succeed where others fail because we do things differently. Our classical curriculum, direct-instruction methods, additional instructional hours, and focus on orderliness are a proven formula for successful learning…

Charter schools do not seek to replace traditional public schools, but rather to complement them, providing alternatives to the existing system. Our way is better for some students, not all. Let parents decide.

Fraud after fraud is associated with virtual charter schools, especially when they are created by entrepreneurs with the purpose of making money. They do make money, but they don’t educate students. Why do legislators and governors allow this scam to proliferate? Every educator should shout their outrage at the ripoffs, happening in state after state. Virtual charter schools are the epitome of “education reform” as hoax.

John Thompson of Oklahoma describes the Oklahoma scam here.

An Oklahoma State Bureau of Investigation affidavit alleges that Epic Charter Schools’ co-founders, David Chaney and Ben Harris, split at least $10 million in profits from 2013 to 2018. The Epic scandal offers some unique insights into both the for-profit charter’s culture and the nature of the school privatization movement, as well as the downsides of online instruction in an age of corporate school reform.

Chaney and Harris allegedly recruited “ghost students” from homeschools and sectarian, private schools “for the purpose of unlawfully diverting State Appropriated Funds to their own personal use.” Epic established a $800 to $1000 per student learning fund for students who were not on the State Department of Education (SDE) “conflict list,” meaning that they were not enrolled in a public school; the state would have known of the illegal dual enrollment had names appeared in both lists. Those students were known as “members of the $800 club,” and their supposed instructors were known as “straw teachers.”

Affidavit: Epic Charter Schools used ‘ghost students’ to embezzle state funds

The following are details that reveal crucial facts relevant to online charters across the nation.

First, the OSBI search warrant cited a case which apparently reveals intent to defraud. A convicted felon, identified as LDW, saw Epic as an opportunity for an “economic windfall.” LDW and her uncertified staff did not require students to work the hours required by the state to earn credit for a full school day. And then there was an interesting twist to the LDW story.

LDW’s research told her that dual enrollment was illegal. So, she converted her school into a“learning center” under the “Epic Model.” LDW made a “‘vague reference” and “implied” that she “‘may have” learned about the Epic model from the Epic website.” Apparently, she justified the acceptance of the $800 per student learning fund money not as “tuition,” but as “before and after care” and “tutoring fees.” Parents didn’t necessarily know or consent to the new model, but LDW sent a document entitled “General Assurance” to David Chaney asserting that she “was not doing anything ‘illegal.’”

The OSBI thus seems to be presenting the case that Epic was illegally draining money from the state, and that Chaney and Harris helped choreograph the illegalities.

Second, Epic’s state funding expanded dramatically, up to $112 million annually, as public schools endured huge budget cuts. Epic also used, or misused, the state’s charter conversion law to take over rural school districts through what one superintendent calls “predatory marketing,” using misleading advertising in “aggressive attempts to attract students and teachers from surrounding school districts even in the middle of the academic year.” And it planned to expand further. Epic had sought to take over the troubled Swink district, but that and the plan to expand in Texas and Arkansas have been put on hold.

Public School’s Switch to Charter Allows Epic to Operate Rural District

https://www.tulsaworld.com/news/local/education/southeastern-

Probe threatens Oklahoma virtual school expansion into Texas

So, Oklahoma was on the path towards even larger online charter scandals, such as in California, Ohio, Florida, and Indiana. And the investigation of the $180 million Florida school and the $40 Indiana fraud might be especially pertinent. It’s not just the way that their virtual school operators “shrug off blame.” More importantly, Florida and Indiana privatizers have the ears of many Oklahoma “reformers.”
Two Indiana virtual schools face swift closure as they shrug off blame for enrollment scandal

https://www.houstonchronicle.com/news/texas/article/Probe-threatens-Oklahoma-virtual-school-expansion-14277159.php
https://chalkbeat.org/posts/in/2019/07/25/two-indiana-virtual-schools-face-swift-closure-as-they-shrug-off-blame-for-enrollment-scandal/

And, third, that brings us to the Oklahoma Council for Public Affairs, Governor Stitt, and legislators who see choice as the panacea which could make Oklahoma a “Top Ten” state. Earlier this summer, the OCPA was bragging about the agenda they would push next year. It then touted Stitt’s support for vouchers and Florida’s education reform plan. In addition to claiming that reforming the state’s funding formula could produce transformative gains, it praised Indiana’s reforms. The OCPA’s claims that fixing Oklahoma’s imperfect but basically good funding formula could fix our schools on the cheap are completely divorced from reality.
https://www.ocpathink.org/post/a-next-generation-school-agenda-for-oklahoma

https://www.ocpathink.org/post/gov-stitt-are-we-done-absolutely-not

Oklahomans paying to educate ‘ghost students’ in numerous districts

Fourth, After Epic’s scandal became public, however, it’s taken alt truth to a new level. It first doubled-down on the politics of personalized vilification of educators and opponents.
Epic quickly replied to Jennifer Palmer’s journalism in Education Watch with insults but without facts. It claimed that the Oklahoma Watch article “implies that ALL Epic’s administrators are evil, skanky people hell bent on destruction of Oklahoma’s public education system.” Epic also argued that Palmer’s work linking such gamesmanship with incentives tied to accountability metrics is “more fiction than a Steven King novel.” They also called it “nefarious.”
After the OSBI’s search warrant was revealed, however, Epic’s responses have become completely bizarre. Whether you believe it needs some updating or not, Oklahoma’s funding formula is based on solid evidence and logic. But the OCPA and Sen. Gary Stanislawski, the Chair of the Senate Education Committee, say that the “weighted average” for funding different types of students in different grades is a system that funds “ghost students.” Equally absurd, the American Legislative Exchange Council, the OCPA, and Sen. Stanislawski claim that the “daily membership” formula funds “ghost students.” Worst of all, the Education Chair buys into the spin about Oklahoma’s formula, “It’s a legal way to rob other school districts.”
It must be stressed that the tactic of answering fact-based charges about “ghost students” with made-up attacks on solid, established funding systems for being schemes to fund made-up “ghost students” is not new and preceded the Oklahoma scandal. The OCPA drew on ALEC’s “Report Card on Education,” praising the way “Indiana Seizes the Hammer, Enacts Comprehensive Reform.” Not surprisingly, it promoted vouchers, charter expansion, undermining teachers’ rights, A-F Grade Cards, and “The Way of the Future: Digital Learning.” If the governor or legislative leaders would bother to follow the OCPA link to the 2012 ALEC report, they would learn that included no evidence that ghost students existed or that improvements resulted from their changes.

Fifth, in fact those “reforms” failed. During the four years after reforms were implemented, the four key tests on the reliable NAEP test scores showed gains of .25 points per year, meaning that student performance remained basically flat. Since they were supposed to be a civil rights campaign against the “low expectations” perpetrated by bad teachers, who were poorly trained and not held accountable by school systems, and defended by bad teachers unions, it is especially important to remember that Indiana’s economic achievement gap increased from 2013 to 2017.

NAEP State Profiles

NAEP State Profiles

Sixth, these alt facts lead to one of the worst aspects of ideology-driven, market-driven reform. Online charters like Epic inflict financial harm on schools. They help some students but hurt many more. Some of the worst damage, however, is inflicted on the principles of public education and our democracy.

Epic et.al have undermined public schools by slandering educators and education advocates. Their statistical and financial gamesmanship has been bad enough. It is their willingness to say anything and to falsely demonize opponents that has most corrupted our constitutional democracy. And that may be the saddest truth about the tragic results of the school privatization era.

The state board of education in Colorado has decided to turn over schools in three districts to a for-profit management corporation that claims it can turn the schools around, at a cost of millions of dollars. Where there the firm has ever turned any schools around before isin doubt. The political connections of the firm are not.

Read here about the story and a deep dive into the history of MGT Consulting.

In all cases, the state board gave districts the go-ahead to pay millions of school district dollars for MGT Consulting, a for-profit management firm, to virtually take over the schools. The move has elicited hope from some that the company can improve student performance after everything the districts have tried has failed. But the contracts have prompted condemnation from critics who say the firm has a dubious track record and is diverting tax dollars to private profits at a time when every cent should be spent on student needs…

Leaders of the Florida-based MGT say they specialize in allocating public money more effectively while improving teacher effectiveness in the classroom and school culture. Its management process includes sub-contracting areas of school work to other companies, and it boasts completing over 10,000 projects in many states and abroad over several decades.

MGT is more than just a school testing consultant. The limited liability corporation also consults for other government agencies, including conducting impact studies of privatizing public prisons, according to its website. MGT’s current chief executive officer also co-founded a consulting and lobbying firm tapped into a national network of for-profit education institutions, Republican education reformers, the testing industry and charter schools.

That’s part of what draws controversy as public school academia question the motives of a company headed by pro-school voucher officials working to save failing public schools — for profit…

The group began its work in the 1970s but has been led in its current iteration since 2015, when Trey Traviesa first appears as MGT’s title manager in Florida state records.

Traviesa is a longtime Floridian and former Republican state representative for the Tampa Bay area. He became a lobbyist, venture capitalist, banker and charter school co-founder after serving in Florida’s House of Representatives from 2004 to 2008.

While serving in the state House, Traviesa sponsored legislation to expand Florida’s school voucher program. That program created incentives for corporations to pay for mostly low-income students to leave their school districts and attend private schools.

MGT was hired largely on the basis of its claims of success in Gary, Indiana.

Chalkbeat wrote about the situation in Gary, which is inconclusive and certainly not a demonstration of success:

It’s early to say anything definitive. In 2017, MGT won a four-year contract to manage schools in Gary, Indiana. The deal is potentially worth about $11.4 million, if the state funds the contract for all four years and if the company meets performance goals.

Gary’s school district has about 5,000 students enrolled this year, down from about 11,000 ten years ago. The students in Gary overwhelmingly qualify for free or reduced price lunch, a measure of poverty, like in Adams 14, but only a handful of students are learning English as a second language.

In Gary, the state ordered an emergency manager to come in not only for academic problems, but because the enrollment decline and fiscal mismanagement problems landed the district deep in debt. MGT took over the responsibilities of the superintendent and the school board, at the state’s request, and reports directly to state officials.

The work has been controversial. Some lawmakers called for removing the firm when it was discovered that Tony Bennett, who was state superintendent in Indiana from 2008 through 2013, is a partner in the Strategos Group, which acquired MGT in 2015. Lawmakers argued that the policies Bennett rolled out in his time as state superintendent contributed to Gary’s financial problems that led the state to require an external manager.

MGT has not been removed, however, and Bennett doesn’t have an active role in the management of the district. According to news reports citing state officials, since the takeover, the Gary district has decreased its debt, slowed its enrollment decline, and purchased new textbooks. The latest state rating of the district has also improved slightly.

In other words, MGT has been in charge of Gary (which former state chief Tony Bennett tried to destroy) for one year. It has not created a successful turnaround, there or anywhere else.

Was the Colorado State Board of education influenced by Governor Jared Polis, who has a long record as a supporter of school choice, having founded two charters himself?

 

Alabama needs to fund its public schools properly but instead it is opening dubious charters and now a for-profit K12 Inc. online virtual school.

K12 makes a lot of profit but gets awful results. Low graduation rates, low participation, low teacher salaries. Just what a state would not want if it actually wanted to improve education.

Online virtual for-profit charter schools are the bottom feeders of the education industry. Even Reformer-Disrupters despise them.

Kevin Huffman (ex-husband of Michelle Rhee) was Commissioner of Education in Tennessee. He recognized that the Tennessee Virtual Academy was the worst School in the state. He tried to close it. He couldn’t.

Politics. Money.

 

 

Virtual charter schools are a disaster for students, but a honey pot for their operators—that is, until they get caught and face the music and possible jail time.

John Thompson describes the epic fail of the EPIC virtual charter in Oklahoma. 

Ghost students, straw teachers, parent bonuses. What a scam.

An Oklahoma State Bureau of Investigation revealed that the co-founders of the state’s largest virtual charter school system, Epic Charter Schools, David Chaney and Ben Harris, split at least $10 million in profits from 2013 to 2018. They allegedly recruited “ghost students” (who were technically enrolled but received minimal instruction from teachers) from homeschools and sectarian private schools “for the purpose of unlawfully diverting State Appropriated Funds to their own personal use resulting in high NFAY [not full academic year] rates and low graduation rates for the students.” 

Epic established an $800-to-$1000-per-student learning fund for students who did not enroll in a public school. These students were dubbed “members of the $800 club,” and assigned to “straw teachers,” who “would receive additional pay in the form of bonuses which included student retention goals,” while “those who dropped students would see a decrease in pay.”

A search warrant cited parents who received money but admitted they had no intention of receiving instruction from Epic. One family withdrew its ten children from public schools,  received $8000, and allowed the kids to ride horses instead of attending school. 

Does anyone have a link to Betsy DeVos’ Senate confirmation hearings when she rattled off the impressive but false statistics about virtual charter schools? It turns out they are the quintessential fraudsters of the Disruption Movement.

 

 

 

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Oklahoma’s Epic Charter Schools seems to be as creative in fraud as Ohio’s ECOT
Epic gave the State Superintendent $23,000 in campaign donations. The Education Department did not investigate Epic’s fraudulent practices.
Epic had ghost students. Epic paid $800-$1000 to each student who didn’t enroll in a public school. One family with 10 children received $8000 and then withdrew the children from Epic.
The bottom line is that unregulated, for-profit online charters are prone to corruption. When will public officials acknowledge that online charters are a public policy mistake?
William L. Phillis | Ohio Coalition for Equity & Adequacy of School Funding | 614.228.6540| ohioeanda@sbcglobal.net| www.ohiocoalition.org
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